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London Scottish Bank sells subsidiary for £28.5m

London Scottish Bank has sold its subsidiary LSIF to Hitachi Capital for £28.5m.

LSIF is the invoice discounting and factoring subsidiary of LSB. It operates from offices in Telford and Goring.

This disposal is part of the board’s strategy to refocus LSB on Robinson Way’s debt purchase and debt collection business and to reduce the capital employed in its lending divisions.

The proceeds from the sale will be used to reduce LSB’s net borrowings.

The sale is conditional upon shareholder approval to be obtained at a general meeting of LSB’s shareholders in the coming weeks.

LSB chief executive Robin Ashton says: “We are pleased with the outcome of our negotiations and believe that this transaction represents good value for our shareholders and stakeholders alike and is a further step towards achieving our stated strategy. The board would like to thank the management and employees of London Scottish Invoice Finance for the valuable contribution that they have made to the Group over the past decade”

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